latest app version does reveal auto hid taskbars for a sec when mouse hover asks, but then rehides before picking something if there is another app window in the area (on blank desktop is fine). preview thumbnails for wherever the mouse was when the taskbar was revealed do stay visible until mouse is moved away. exited the app, installed 12.2 v2 beta and still have the new issue, but v2 used to be fine.

*new clue* by playing with window sizes near the taskbar area i can see the taskbar revealed correctly on top, then quickly closes but remains open underneath the nearby app window until used to do something or the mouse is moved away.

*possible solution; followed this gemini advice, seems to work properly for now, will update if not sticky:

1. Locate SetWindowPos: Disallow TopMost Calls in the Advanced Settings menu.
2. By default, it is blank or disabled. Change its value to 1 (or check the box/enable it, depending on your version's UI). (mine required this: After you select "Topmost will never be allowed"):
3. Click Apply and OK.
4. Restart DisplayFusion (right-click the tray icon -> Exit, then relaunch it) to force the new layering rules to take effect.